Local Housing Allowance Questions and Answers: Landlord Audience
This information is to assist Landlords understand the implications of the introduction of Local Housing Allowance, and how it affects them and their tenants. There are details on the following: Background to the Local Housing Allowance, Local Housing Allowance Rates, Service Charges, Direct Payments to Landlords, Recovery of Overpayments, Appeal Rights and Landlords in general. A document containing this information can be downloaded from the bottom of this page. Should you require any further information please contact the Benefits Helpline on 01256 810680 or email us.
Background to the Local Housing Allowance
What is the Local Housing Allowance and when will it be introduced?
What does the LHA scheme cover?
What do you define as the mainstream private sector?
Will benefit claims be transferred to LHA rates right away?
What are the rates based on?
Why are the changes being made?
Will you be introducing LHA into the social sector?
LHA Rates
How is the LHA calculated?
Who decides LHA rates?
Where and when will LHA rates be published?
How will LHA areas be decided?
Will there be any right of appeal against the levels of allowances for each Broad Rental Market Area determined by the Rent Officer?
What if the customer’s benefit is higher than their rent?
What if the customer’s benefit is lower than their rent?
Will new customers be assessed under the old rules and paid the higher amount if they would be better off?
What if there is provision for a contractual rent increase in the middle of the year?
Service Charges, Boarders, Joint Tenants and Crown Tenants
How will service charges be handled?
Are Crown Tenancies excluded from LHA?
How will joint tenants be treated?
Direct payments to the landlord
Who will benefit be paid to?
What are these exceptions?
Why are eight weeks arrears significant?
What if I, as a landlord, just prefer to have the rent paid direct to me?
If I ask 8 weeks rent in advance, so that the tenant is ‘in arrears’ after one day of the tenancy, is the local authority obliged to pay me directly?
If I do receive the payment of rent direct to me, will I be paid any of the customer’s excess as well?
What if the tenant is withholding rent due to a dispute?
Recovery of overpayments
How will overpayments be recovered?
What is a "fit and proper test"?
What if benefit payments were split?
Appeal Rights
Will appeals against direct payment decisions be allowed?
If I won an appeal obliging the local authority to make direct payments to me, would the LA pay me all the arrears that are due, even though they had already paid benefit to the tenant?
Can a tenant or landlord appeal against a decision that the landlord should not receive Housing Benefit on the customer's behalf as an agent?
Will there be any right of appeal about the application of an LHA in an individual case?
LHA and Landlords
What have been the experiences of landlords in the LHA pilot areas?
Has the introduction of LHA resulted in landlords exiting the HB market?
What is the position regarding the number of tenants receiving their LHA direct?
